Skip to main content

Economic Costs, from Individuals to Health Systems: Evidence from a Middle-Income Country

  • Chapter
  • First Online:
The Diabetes Textbook

Abstract

Objective: To identify the economic burden of diabetes management in a middle-income country and its causes. Methods: Evaluative research based on a longitudinal-type design. We used the Kessner criteria and cost technology by instrumentation. For the estimation of epidemiological changes, we developed some models under the Box–Jenkins technique for the period of time 2014–2016. The financial requirements were obtained from case management costs expected by disease and the application of an econometric adjustment factor to control effects of inflation. Results: Comparing the economic impact in 2013 versus 2015 (p < 0.05), there is a 26% increase in financial requirements. The total amount for diabetes in 2015 (US dollars) was $ 8,974,662,570. It includes $ 3,981,426,810 in direct costs and $ 4993,235,752 in indirect costs. The total direct costs expected are $ 473,135,561 for the Ministry of Health (SSA), serving to uninsured population, $ 1318,506,546 for insured population (Mexican Institute for Social Security (IMSS) and Institute for Social Security and Services for State Workers (ISSSTE)), $ 2070,341,961 to users, and $ 119,442,750 to private health insurance (PHI). Conclusions: If the risk factors and the different health-care models remain as they are currently in the institutions analyzed, the financial consequences would be of major impact for the pockets of the users, following in order of importance, IMSS, SSA, and finally ISSSTE. We suggest rethinking the process of planning, organization and allocation of resources, in terms of demand for hospital and outpatients services for patients with diabetes. On the other hand, it suggests fundamental changes in the care model, increasing significantly resources and strategies toward greater prevention and primary care actions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 79.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Arredondo A, Orozco E. Libro Gerencia y Economía en Salud. Indicadores epidemiológicos y económicos: Aportes de la economía de la salud. Centro Interamericano de Estudios en Seguridad Social. Mexico, DF. ISBN: 968-6748-39-3; 2014. p. 91–112.

    Google Scholar 

  2. Pinzón Flórez CE, Chapman E, Panisset U, Arredondo A, Fitzgerald J, Reveiz L. Disponibilidad de indicadores para el seguimiento del alcance de la “Salud Universal” en América Latina y el Caribe. Rev Panam Salud Pública. 2016;39(6):330–40.

    Google Scholar 

  3. Arredondo A, Barceló A. The economic burden of out-of-pocket medical expenditures for patients seeking diabetes care in Mexico. Diabetologia. 2007;50:435–6.

    Article  Google Scholar 

  4. Instituto Nacional de Salud Pública. Métodos de estimación de demanda esperada de enfermedades crónico-degenerativas. Informe Técnico de Memoria Metodológica. Cuernavaca, México. Febrero del 2017. p. 63–78.

    Google Scholar 

  5. Arredondo A, Zuñiga A. Economic burden of diabetes in middle-income countries: the Mexican case. Diabetes Care. 2004;29:104–9.

    Article  Google Scholar 

  6. Secretaría de Salud, Información básica sobre recursos y servicios del Sistema Nacional de Salud. Informe Técnico. 2016. p. 68–76.

    Google Scholar 

  7. Panamerican Health Organization, Health Analysis and Information Systems, Regional Mortality Database. 2016. p. 23–37.

    Google Scholar 

  8. Caro J, Ward A, O’Brien J. Lifetime Costs of Complications Resulting From Type 2 Diabetes in the U.S. Diabetes Care. 2002;25:476–81.

    Article  Google Scholar 

  9. Brown JB, Pedula KL, Bakst AW. The progressive cost of complications in type 2 diabetes mellitus. Arch Intern Med. 1999;159:1873–80.

    Article  CAS  Google Scholar 

  10. International Diabetes Federation. Direct cost to the health care sector. Brussels: Diabetes Health Economics, International Diabetes Federation; 2015. p. 13–5.

    Google Scholar 

  11. Dawson KG, Gomes D, Gerstein H, Blanchard JF, Kahler KH. The economic cost of diabetes in Canada. Diabetes Care. 2002;25:1303–7.

    Article  Google Scholar 

  12. Barcelo A, Daroca MC, Ribera R, Duarte E, Zapata A, Vohra M. Diabetes in Bolivia. Rev Panam Salud Publica. 2001;10:318–23.

    CAS  PubMed  Google Scholar 

  13. International Diabetes Federation. Direct cost to the health care sector. Brussels: Diabetes Health Economics, International Diabetes Federation; 2015. p. 29–35.

    Google Scholar 

  14. Wild S, Roglic G, Green A, Sicree R, King H. Global prevalence of diabetes. Estimates for the year 2000 and projections for 2030. Diabetes Care. 2014;27:1047–53.

    Article  Google Scholar 

  15. Herman WH, Eastman RC. The effects of treatment on the direct cost of diabetes. Diabetes Care. 1998;21(Suppl 3):19–24.

    Article  Google Scholar 

  16. Arredondo A. Out-of-pocket costs to users: medicine options for hypertension. Am J Hypertension. 2008;21:443.

    Article  Google Scholar 

  17. Murray A. Chap. 2: Statistical modelling and statistical inference: measurement error in the explanatory variables. Box-Jenkins technique. In: Statistical modelling in GLIM. 3rd ed. New York: Oxford Science Publications, Ox. Uni. Press; 2005. p. 112–32.

    Google Scholar 

  18. Barceló A, Aedo C, Rajpathak S, Robles S. The cost of diabetes in Latin America and the Caribbean. Bull World Health Organ. 2003;81:19–27.

    PubMed  PubMed Central  Google Scholar 

  19. Banco de México, editor. Indice Nacional de Precios por Servicios Médicos en México. Cuadernos Mensuales, Base 1998=100. La Actividad Económica en México. 1983–2012. Gerencia de Investigación Económica. México, DF: Banco de México Ed; 2016. p. 46–68.

    Google Scholar 

  20. Arredondo A. Changing paradigms and challenges: evidence from epidemiological and economic burden of diabetes in Latin America. Diabet Med. 2017;34(7):1009–10.

    Article  CAS  Google Scholar 

  21. American Diabetes Association. Economic costs of diabetes in the US in 2002. Diabetes Care. 2003;26:917–32.

    Article  Google Scholar 

  22. Zhang P, et al. Global healthcare expenditure on diabetes for 2010 and 2030. Diabetes Res. 2010;87:293–301.

    Google Scholar 

  23. Bommer C, et al. The global economic burden of diabetes in adults aged 20–79 years: a cost-of-illness study. Lancet Diabetes Endocrinol. 2017;5(6):423–30.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Armando Arredondo .

Editor information

Editors and Affiliations

Appendix 1. Model Format to Determine Production Costs by Diabetes Case Management

Appendix 1. Model Format to Determine Production Costs by Diabetes Case Management

Institution --------------------------------------------------------  Production function ------------------------------------------------------------

Type of input

Measure unit

Unit cost

Quantity by case management

Average cost

Equation of depreciation

Total cost

Human resources

      

Equipment and furniture

      

Drugs

      

Diagnostic studies, etc.

Infrastructure

Maintenance services

General services

Total cost

      

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Arredondo, A., Orozco, E., Duarte, M.B., Cuadra, S.M., Recamán, A.L., Azar, A. (2019). Economic Costs, from Individuals to Health Systems: Evidence from a Middle-Income Country. In: Rodriguez-Saldana, J. (eds) The Diabetes Textbook. Springer, Cham. https://doi.org/10.1007/978-3-030-11815-0_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-11815-0_3

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-11814-3

  • Online ISBN: 978-3-030-11815-0

  • eBook Packages: MedicineMedicine (R0)

Publish with us

Policies and ethics